1. According to the ISLM model, what happens in the short run to the interest rate, income,...
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1. According to the IS–LM model, what happens in the short run to the interest rate, income, consumption, and investment under the following circumstances?
a. The central bank increases the money supply.
b. The government increases government purchases.
c. The government increases taxes.
d. The government increases government purchases and taxes by equal amounts.
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